Vol. 13 (1) March 2013 – OPIEJ

Assessment of the Oil Palm Seedlings Assistance Scheme on Fresh Fruit Bunch Yield and Income of Smallholders

mpob_admin — Tue, 28 Aug 2018 14:29:49 +0000

Yield of oil palm fresh fruit bunch (FFB) of smallholders is generally lower than that of the estates, mainly because of the poor management of their oil palm holdings. It is essential for the smallholders to have adequate knowledge of good management so as their yields and income will increase further. In this respect, they need to adopt good agricultural practices (GAP) which include planting techniques, use of balanced and adequate fertilisers, and the proper maintenance of the oil palms. Also, they need to use high quality oil palm seedlings from reputable nursery operators who comply with the Oil Palm Nursery Competency Certification (OPNCC) standard. To assist these smallholders, a scheme called the Quality Oil Palm Seedlings Assistance Scheme (SBABB) was implemented from 2006 to 2010, which benefited a total of 5697 smallholders, especially in Sabah and Sarawak. Through a survey carried out, it was found that participants of the scheme (or the SBABB smallholders) had achieved a higher first year FFB yield compared to non-participants (or non-SBABB smallholders). The survey also found that these SBABB smallholders had successfully obtained a gross income of RM 7160/ha in the first year of harvest which was due to high FFB yield. Other smallholders should emulate these SBABB smallholders in achieving high FFB yield so that they will also enjoy a better standard of living from the high income generated through this business in the future.

Measuring Performance Efficiency of Oil Palm Plantations using Window Analysis

mpob_admin — Tue, 28 Aug 2018 14:28:50 +0000

Performance of a unit or an organisation is among the issues discussed as a way of helping the decision-making process. This study was aimed at determining and evaluating performance efficiency trends in the management of selected plantations in the oil palm industry. It took into account the input and output factors using data envelopment analysis (DEA). Relative efficiency was identified to set the benchmark in this case study, and as a way to improve the overall activities related to the use of input as resources by the least efficient plantation. The DEA method was used to calculate the efficiency trend score. Data collected were from the years 2001-2010 for five input and one output variables. Analysis was conducted using the Window Analysis, DEA Solver. The overall result shows significant correlations among the variables and that the average efficiency score determines efficiency trend. Two out of three plantations studied had highest average efficiency scores while the other one was the less efficient.

Economic Feasibility Study on Establishing an Oil Palm Biogas Plant in Malaysia

mpob_admin — Tue, 28 Aug 2018 14:27:43 +0000

The processing of oil palm fresh fruit bunch (FFB) primarily for palm oil results in the production of large amount of wastes, particularly in the form of palm oil mill effluent (POME). Production of POME can be estimated at almost three times the quantity of crude palm oil (CPO) produced. It can pollute the environment through the production of biogas which can be captured through a biogas-capturing system in a biogas plant. After capturing, the biogas can be utilised either for fueling the mill boiler, electricity generation, flaring or as cooking gas. This current study was carried out with the objective of assessing the economics of establishing an oil palm biogas plant based on the four different utilisation methods of the biogas. The results indicate that utilising biogas for the boiler gives higher economic returns compared with the other three options, given certain conditions. This study finally concludes with some issues that have an impact on any interested investor in a biogas project.

Impact of Palm Oil Supply and Demand on Palm Oil Price Behaviour

mpob_admin — Tue, 28 Aug 2018 14:26:41 +0000

The article will highlight the impact of supply and demand and market sentiment factors on the Malaysian palm oil price behaviour, and will examine their impact in 2013. The price of crude palm oil (CPO) is dependent on many factors that vary from time to time, such as fundamental factors, i.e. both supply and demand factors in the world market and unpredictable market sentiments, e.g. extreme weather phenomenon, political crisis, new policies or regulations, and impact of natural disasters. The CPO price in 2012 is a good example where it was affected negatively by a combination of both supply and demand factors. From the supply perspective, the CPO stock build-up arising from high carry-over stocks at the beginning of the year and an increase in CPO production had contributed to its bearishness in 2012. From the demand side, it is a weaker export demand from major importing countries, like China, P R and Pakistan. The introduction of Malaysia’s new CPO export tax structure effective 1 January 2013 is likely to result in an increase in palm oil exports and, thus, indirectly to a reduction in the high palm oil stock levels in the country. Moreover, the B5 programme which is to be expanded throughout Malaysia in 2013/2014 will also reduce the level of palm oil stock availability in the country. Besides that, the Malaysian palm oil supply growth in 2013 is expected to increase moderately due to the introduction of the oil palm replanting scheme with a government allocation of RM 100 million for this purpose. The scheme is expected to see the replanting of 100 000 ha of unproductive palms and palms over the age of 25 years. These scenarios will indeed be a positive indication of the firming up of CPO prices in the market place in 2013. The article will also incorporate the use of an econometric modeling method for an analysis of the factors affecting CPO price behaviour.